Business Acquisition

12 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Business Acquisition

NOTE 5: BUSINESS ACQUISITION

On June 30, 2019, the Company acquired 99% of the outstanding common shares of Alpha Predictions LLP (“Alpha Predictions”). Alpha Predictions is an India-based technology company that has developed a suite of commercial data analysis products for use across multiple industries. This acquisition has been integrated into our international operations and as expected, has driven revenue growth and innovation.

The goodwill of $6,020 arising from the acquisition consists largely of the synergies expected from combining the operations of the Company and Alpha Predictions.

The following table summarizes the consideration paid for Alpha Predictions and the fair values of the assets acquired and liabilities assumed recognized at the acquisition date.

Consideration
Cash	$	1,438
Fair value of total consideration transferred		1,438
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash		3,127
Accounts receivable		26,155
Prepaid expenses		7,488
Property and equipment		11,048
Intangible asset – purchased software		2,905,668
Accounts payable		(26,067	)
Accrued expenses and other current liabilities		(2,924,288	)
Income tax provision, current		(7,713	)
Total identifiable net assets		(4,582	)
Goodwill	$	6,020

The acquired intangible asset – developed software was recognized at fair value as of the acquisition date and subject to a useful life of 3 years.

The fair value of the one-percent noncontrolling interest in Alpha Predictions was determined to be immaterial, based on extrapolation of the price paid by the Company for its controlling interest and consideration of any potential control premiums.

Acquisition-related costs expensed by the Company were immaterial for the year ended June 30, 2019. There were no acquisition-related costs incurred by the Company for the year ended June 30, 2020.

 The revenue and net loss of the combined entity had the acquisition date been July 1, 2018, are as follows for the year ended June 30, 2019:

Supplemental pro forma:
Revenue	$	4,554,594
Net loss	$	(2,959,165	)

Supplemental pro forma amounts were calculated after applying adjustments to reflect amortization of acquired intangible asset – purchased software that would have been charged had the acquisition date been July 1, 2017. For the year ended June 30, 2020, supplemental pro forma amounts are not presented as the actual consolidated financial results of the Company include the financial results of Alpha Predictions for such period.